Question
A project has the following cash flows: Year 0: -$200,000, Year 1: $80,000, Year 2: $90,000, Year 3: $100,000. Calculate the Internal Rate of Return
A project has the following cash flows: Year 0: -$200,000, Year 1: $80,000, Year 2: $90,000, Year 3: $100,000. Calculate the Internal Rate of Return (IRR) for the project. Discuss the project's risk if the IRR is higher than the company's required rate of return of 12%.
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0071051590
